Shane Ross: Reduce Corporation Tax to 9.9%

Mr. Loverman

From The Irish Independent:

Enda should go further. He should let his fellow heads of government know that Ireland is contemplating encouraging further multinational investment with a unilateral cut in the rate, bringing it down to 9.9 per cent.

They would go ape; but he can remind them that Ireland's tax is Ireland's business. He should point out that Ireland is not in a position to repay its mountain of debt, that Europe has a responsibility for our plight.

He should then return from Brussels after the summit on March 24 and announce that he intends to hold a referendum on the EU/IMF deal.

Referendums in Ireland usually put the fear of God into Europe.

We have a record of awkward popular outbreaks of democracy that refuse to be bullied by Brussels.

If we are about to take a hard line in the interests of the economy, we need ministers who understand economics and can read balance sheets.

Gotta love that guy. :pac:

erictheviking1

Love it! 2 Fingers to the EU.

Permabear

This post has been deleted.

Chuck Stone

I like it. Finger on the pin of a grenade.

Joey the lips

Man is a pleb and starting to loose all my respect. You maybe cannot see it but he makes Michael o leary look like a saint.

Just to help you understand if ireland has a referendum on the bail out it effects the value of the euro.

If this happen the dollar gains strength. This makes our imports of oil more expensive

Good man shane.

ei.sdraob

Is Shane Ross a boardsie
I think it was pointed out in one thread that we cant lower it below 10% due to some treaty, maybe someone can provide more legal details

Joey the lips wrote: »

Man is a pleb and starting to loose all my respect. You maybe cannot see it but he makes Michael o leary look like a saint.

Just to help you understand if ireland has a referendum on the bail out it effects the value of the euro.

If this happen the dollar gains strength. This makes our imports of oil more expensive

Good man shane.

put a few billion on $ rising , it give you a better return than NAMA for sure...

edwinkane

Permabear wrote: »

This post had been deleted.

Why 500? I'm not sure you could discriminate against non multinationals or against employers of under 500. But, in principle, I am all for taxing less in the sure knowledge that governments spend our money less efficiently and wisely than we do ourselves.

Mr. Loverman

Joey the lips wrote: »

Man is a pleb and starting to loose all my respect. You maybe cannot see it but he makes Michael o leary look like a saint.

Just to help you understand if ireland has a referendum on the bail out it effects the value of the euro.

If this happen the dollar gains strength. This makes our imports of oil more expensive

Good man shane.

But it also makes our exports cheaper, and we are one of the world's largest exporters.

Look at Germany, they are booming because of the weak Euro.

Chuck Stone

Joey the lips
Just to help you understand if ireland has a referendum on the bail out it effects the value of the euro.

Just to help you understand how up to thier necks in it the big British German banks are I've provided this diagram.

http://www.ritholtz.com/blog/wp-content/uploads/2010/11/IRELAND_bail_out-002.jpg

Who's bailing out who?

Joey the lips

Mr. Loverman wrote: »

But it also makes our exports cheaper, and we are one of the world's largest exporters.

Look at Germany, they are booming because of the weak Euro.

Our biggest export is Tourism(Tourism is classed as invisable exports when people come into the country). The americans are not traveling so that only leaves the europeans. I dont imagine they will be in the mood for traveling if the euro falls and inflation rises..

Try again;)

AnonymousPrime

Permabear wrote: »

This post had been deleted.

That is a very short sighted solution and will once again narrow our tax base, which is the reason why the current cuts feel as bad as they do.

Joey the lips wrote: »

If this happen the dollar gains strength. This makes our imports of oil more expensive

And it lowers the cost of doing business ireland relative to the US, and will (admittedly through tough measures) reduce our dependence on fossil fuels.


Although I don't agree with this idea I suspect that neither does Shane Ross. What I like about it is that he is suggesting standing up to the EU. Day by day I am loosing sight as to why we are bending over backwards for these people.

Permabear

This post has been deleted.

whiteonion

Why is it that normal countries are able to have normal corporation tax rates without suffering from mass unemployment? The corp tax should be raised. The MMC:s are not going to leave the country because we jack up the corrp tax to 20% such a move would be very costly.

Scofflaw

They would go ape; but he can remind them that Ireland's tax is Ireland's business. He should point out that Ireland is not in a position to repay its mountain of debt, that Europe has a responsibility for our plight.

Why does Europe have a responsibility for our plight? Because we're an EU country and we were stupid enough to let our banks build up debts that dwarfed our economy - and then stupid enough to guarantee those debts entirely off our own bat?

Why do people insist on putting the blame on those who are only lending us the money to cover the debts our government freely chose to take on?

Do people simply forget what happened in September 2008? How we outsmarted everybody else with a 'heroic' guarantee of all our banks' debts? No mention of the ECB or the EU then - except the question of whether when presented with our so-clever fait accompli they would have an objection that would prevent us doing it.

cordially,
Scofflaw

edwinkane

Permabear wrote: »

This post had been deleted.

My goodness, shhhhhhhhhhh. We must be the only two on boards who don't think the state should interfere at ever opportunity (and ever where there are not opportunities), and that the more money a state taxes, the better it is.

Permabear

This post has been deleted.

AnonymousPrime

whiteonion wrote: »

The MMC:s are not going to leave the country because we jack up the corrp tax to 20% such a move would be very costly.

They would over time.

ei.sdraob

edwinkane wrote: »

My goodness, shhhhhhhhhhh. We must be the only two on boards who don't think the state should interfere at ever opportunity (and ever where there are not opportunities), and that the more money a state taxes, the better it is.

you will never make a good politician :P

whiteonion

Scofflaw wrote: »

Why does Europe have a responsibility for our plight? Because we're an EU country and we were stupid enough to let our banks build up debts that dwarfed our economy - and then stupid enough to guarantee those debts entirely off our own bat?

Why do people insist on putting the blame on those who are only lending us the money to cover the debts our government freely chose to take on?

Do people simply forget what happened in September 2008? How we outsmarted everybody else with a 'heroic' guarantee of all our banks' debts? No mention of the ECB or the EU then - except the question of whether when presented with our so-clever fait accompli they would have an objection that would prevent us doing it.

cordially,
Scofflaw

I was screaming at the top of my lungs when they made that guarantee. I said it was pure madness while the media sold it as a great plan. It was obvious from the beginning that the bank guarantee would fail.

Mr. Loverman

Scofflaw wrote: »

Why does Europe have a responsibility for our plight? Because we're an EU country and we were stupid enough to let our banks build up debts that dwarfed our economy - and then stupid enough to guarantee those debts entirely off our own bat?

Why do people insist on putting the blame on those who are only lending us the money to cover the debts our government freely chose to take on?

Do people simply forget what happened in September 2008? How we outsmarted everybody else with a 'heroic' guarantee of all our banks' debts? No mention of the ECB or the EU then - except the question of whether when presented with our so-clever fait accompli they would have an objection that would prevent us doing it.

cordially,
Scofflaw

Oh I think the way our Government has handled this country over the past decade has been a complete joke. And I think the way people paid crazy money for crappy property is a joke. We are an embarrassment.

But forgetting all that, we cannot afford to pay back the debt, and the EU cannot afford to let us default.

So both Ireland and the EU need to cop on and come to an agreement which works for everyone.

Permabear

This post has been deleted.

AnonymousPrime

Permabear wrote: »

This post had been deleted.

I am not disputing that. In the short term you are correct, but jobs come and go.
With no property tax, huge tax free allowances and your proposed 0 corporation tax, the state is reliant on income tax and VAT, and the next bust (and you are naive if you think it will not happen) will be felt much MUCH harder.

Income from corporation tax is the only thing keeping our heads above the water at the moment

Scofflaw

Mr. Loverman wrote: »

Oh I think the way our Government has handled this country over the past decade has been a complete joke. And I think the way people paid crazy money for crappy property is a joke. We are an embarrassment.

But forgetting all that, we cannot afford to pay back the debt, and the EU cannot afford to let us default.

So both Ireland and the EU need to cop on and come to an agreement which works for everyone.

That's something I'm 100% behind - but we won't get there by whipping everyone up into a frenzy of "they owe us" and "they're shafting us". They don't owe us a darn thing. They're putting their taxpayers' money on the line for us, and if they want something more in return than a load of whining, that's hardly unfair in princple.

cordially,
Scofflaw

senordingdong

I think there's merit to the idea.
Considering how every other cost of operating in Ireland has soared, the low corporate tax rate is not as attractive as it once was.

edwinkane

Scofflaw wrote: »

That's something I'm 100% behind - but we won't get there by whipping everyone up into a frenzy of "they owe us" and "they're shafting us". They don't owe us a darn thing. They're putting their taxpayers' money on the line for us, and if they want something more in return than a load of whining, that's hardly unfair in princple.

cordially,
Scofflaw

Actually, for many years ireland made the ""they owe us" and "they're shafting us" into something of an art form in the EU.

Permabear

This post has been deleted.

Dirk Gently

This is something I've wanted to do since the "bail out". Tie our corpo rate relative to the debt interest rate. (does anyone have estimated figures for what a 3.5% drop in corpo would generate in investment? ). I would have put our corpo rate at 9% and raise it relative to any interest rate drop. I'd also like to see the tax paid by large companies in rural areas ringfenced and reinvested locally in transport for goods / workers and education / courses in the region.

This is coming from someone who wants us to ease ourselves off MNC's and instead build our own sustainable indigenous economy with small / medium Irish businesses. Extraordinary times call for extraordinary measures though and we have to use wisely what little we have in our economic arsenal. Jobs and growth are the only way out of this. Jobs and growth in Ireland is bad for Sarkozy though and I'm sure he'd prefer to see Ireland stagnate if it meant foreign investment in France.

whiteonion

If low taxes were good for the economy Finland would be struggling whereas Ireland still would be doing great... just sayin...

Scofflaw

edwinkane wrote: »

Actually, for many years ireland made the ""they owe us" and "they're shafting us" into something of an art form in the EU.

Unfortunately, the beal bocht looks a little less convincing when you're the second wealthiest country by GDP/capita in the EU. Even adjusting for GNP rather than GDP, we're still richer than France, or Spain, or Italy - and GNP isn't quite right, because we do tax the GNP-GDP gap.

cordially,
Scofflaw

Permabear

This post has been deleted.

hmmm

I'm disappointed with Ross, this suggestion is like something out of a playground and not something a grown-up should consider. It's all very well for SF and the ULA to shout out mindless slogans, I expect more from Ross.